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Announcement:
Moody's says DOJ approval of T-Mobile's merger with Sprint has no ratings impact; lawsuit by 13 state AGs remains primary hurdle
26 Jul 2019
New York, July 26, 2019 -- Moody's Investors Service says the ratings of T-Mobile USA, Inc. (T-Mobile, Ba2 stable) and Sprint Corporation (Sprint, B2 review for upgrade) remain unchanged following the filing today of a proposed settlement by the Department of Justice (DOJ) and Attorneys General for five states that addresses the anticompetitive concerns of the DOJ's Antitrust Division regarding the proposed merger between T-Mobile US, Inc. (T-Mobile US), the parent of T-Mobile, and Sprint. While this proposed settlement still needs to be approved by the US District Court for the District of Columbia, a primary hurdle for the merger's close remains in the form of litigation by 13 state Attorneys General and the District of Columbia (state AGs group). The state AGs group, which has grown in size over time, initially filed a multi-state lawsuit to block the merger on anticompetitive grounds on June 11. This lawsuit is expected to proceed despite this DOJ proposed structural solution. Absent the companies' settlement with the state AGs group, this lawsuit is scheduled to proceed on October 7, the currently scheduled trial date, though the date is likely to be pushed into November. This litigation creates continued uncertainty as to the likelihood of a merger close and will protract the process further, potentially jeopardizing the merger's close for
Moody's says DOJ approval of T-Mobile's merger with Sprint has no ratings impact; lawsuit by 13 state AGs remains primary hurdle
26 Jul 2019
New York, July 26, 2019 -- Moody's Investors Service says the ratings of T-Mobile USA, Inc. (T-Mobile, Ba2 stable) and Sprint Corporation (Sprint, B2 review for upgrade) remain unchanged following the filing today of a proposed settlement by the Department of Justice (DOJ) and Attorneys General for five states that addresses the anticompetitive concerns of the DOJ's Antitrust Division regarding the proposed merger between T-Mobile US, Inc. (T-Mobile US), the parent of T-Mobile, and Sprint. While this proposed settlement still needs to be approved by the US District Court for the District of Columbia, a primary hurdle for the merger's close remains in the form of litigation by 13 state Attorneys General and the District of Columbia (state AGs group). The state AGs group, which has grown in size over time, initially filed a multi-state lawsuit to block the merger on anticompetitive grounds on June 11. This lawsuit is expected to proceed despite this DOJ proposed structural solution. Absent the companies' settlement with the state AGs group, this lawsuit is scheduled to proceed on October 7, the currently scheduled trial date, though the date is likely to be pushed into November. This litigation creates continued uncertainty as to the likelihood of a merger close and will protract the process further, potentially jeopardizing the merger's close for